Explain how changes in unplanned inventories can explain
employment decisions by a firm and how this...
Explain how changes in unplanned inventories can explain
employment decisions by a firm and how this can be used to explain
unemployment during the 1930's depression.
.Please fully answer the following: Explain
fully the role played by unplanned investment in inventories in
determining equilibrium in the Keynesian model. Use the examples of
AD > GDP and AD < GDP to illustrate your answer.
Will rate answer based on completeness and justification of
answer, thanks.
a."Explain why unplanned inventory changes are not considered
part of aggregate expenditure.
b.You receive $1,000. How much of it will you spend this year
and how much of it will you save? What is your marginal propensity
to consume?"
Should personality tests be used to inform employment decisions?
Why or why not? How can value, relevance, and/or applicability of
personality tests for these types of decisions be increased?
Assume that aggregate
expenditures are greater than real GDP.
What will happen to
unplanned inventories?
What will happen to
actual investment?
What will happen to
production and employment levels in the next period?
explain the components of the cash cycle and how changes in
these components can increase or decrease the cash cycle. What is
preferable a negative or positive cash cycle? Why?
Why do macroeconomists care about unplanned inventories?
What is the consequence if firms amass large quantities of
unplanned inventory at the beginning of a recession?
What about reductions in inventories? Is that always a good sign
for the economy? Why not?